Finance/Accounts Manager SOPs – A Complete Guide for Hotels

A well-structured Finance/Accounts department is the backbone of every successful hotel. From budgeting and payroll to auditing and statutory compliance, the Finance/Accounts Manager ensures that every financial activity is accurate, transparent, and aligned with the property’s goals. Below is a comprehensive guide to Finance/Accounts Manager SOPs designed specifically for hotels and hospitality businesses.

1. Introduction

The Finance/Accounts Manager plays a strategic and operational role in managing a hotel’s financial performance. These SOPs help standardize processes, reduce risk, ensure compliance, and improve overall efficiency.

2. Key Responsibilities of the Finance/Accounts Manager

a. Financial Planning & Budgeting

• Prepare annual operating budgets for all departments.

• Coordinate with HODs to forecast revenues and expenses.

• Monitor budget variances and recommend corrective actions.

b. Financial Reporting

• Prepare daily, weekly, and monthly financial statements.

• Ensure accuracy of P&L statements, balance sheets, and cash flow reports.

• Present performance reports to management for decision-making.

c. Revenue Management & Control

• Validate daily revenue reports from Front Office & POS systems.

• Ensure proper accounting of room sales, F&B sales, banquet billing, and other revenue streams.

• Verify rate codes, discounts, and complimentary approvals.

d. Vendor Payments & Purchase Control

• Maintain supplier records and verify purchase orders.

• Ensure timely payment to vendors based on credit terms.

• Perform 3-way reconciliation: PO – GRN – Invoice.

• Monitor inventory and coordinate with the store team for stock audits.

e. Payroll & Employee Claims

• Process monthly salaries with deductions and benefits.

• Verify attendance, overtime, and incentives.

• Approve travel claims, petty cash reimbursements, and advances.

f. Statutory Compliance

• Ensure GST, TDS, PF, ESI, and other statutory filings are done on time.

• Maintain updated documentation for audits and compliance.

• Liaise with government authorities when required.

g. Cash & Bank Management

• Supervise daily cash collections from front office and outlets.

• Perform bank reconciliations.

• Ensure safe deposit, cheque management, and cash-flow tracking.

3. Standard Operating Procedures (SOPs)

SOP 1: Daily Financial Operations

• Collect and verify daily revenue reports.

• Match cash, card, and online collections with system reports.

• Report discrepancies to the General Manager immediately.

• Update daily expenses and prepare daily cash flow statements.

SOP 2: Accounts Receivable (AR)

• Maintain accurate billing for corporate, OTA, and travel agent bookings.

• Follow up with credit clients within defined timelines.

• Prepare and share aging reports with management.

• Escalate overdue accounts after 30–60–90 days.

SOP 3: Accounts Payable (AP)

• Verify all vendor invoices with purchase orders.

• Obtain HOD approval before processing payment.

• Schedule payments based on priority and due dates.

• Maintain vendor ledger entries and communicate discrepancies.

SOP 4: Monthly Closure Process

• Complete ledger review and bank reconciliation.

• Verify stock and inventory reports with the store department.

• Prepare monthly P&L and submit to management.

• Review all vouchers, approvals, and documentation before final submission.

SOP 5: Internal & External Audit

• Support auditors by providing required documents.

• Maintain proper filing and records for easy traceability.

• Implement audit recommendations and compliance checkpoints.

4. Key Checklists for Finance/Accounts Manager

Daily Checklist

• ✔ Revenue verification

• ✔ Cash & deposit reconciliation

• ✔ OTA and corporate billing updates

• ✔ Expense entries

• ✔ Cash flow report

Monthly Checklist

• ✔ P&L statement

• ✔ Payroll processing

• ✔ Vendor payment cycle

• ✔ Tax filing & statutory compliance

• ✔ Budget variance report

5. Importance of SOPs in Hotel Finance

Implementing these SOPs provides:

• Better financial control

• Reduced fraud and leakage

• Accurate forecasting & budgeting

• Transparent accounting

• Smooth audit & compliance

• Improved profitability and decision-making

A well-defined set of Finance/Accounts Manager SOPs ensures the hotel operates with financial discipline, transparency, and stability. By standardizing financial operations, hotels can minimize errors, boost profitability, and maintain healthy business growth.